Retirement Income Showdown: Risk Premium vs. Risk Pooling

E (1.5)
E (1.5)
Main
5/14/2019
2:40 PM - 3:55 PM
This presentation goes into greater depth about two retirement income tools: using an aggressive investment portfolio to seek greater returns through the risk premium, and using an income annuity with a partial annuitization strategy to seek greater returns through risk pooling. My research finds that risk pooling tends to be underappreciated as a unique source of returns that is unavailable for an investment portfolio in which the retiree aims to self-manage longevity and market risk through conservative spending. Risk pooling provides contractual guarantees for income, greater true liquidity, and the potential for a larger legacy over the long term.

Sponsored by Lincoln Financial Group.

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